Supply Chain Technology Paper 3

Supply Chain Technology/Paper #3

Conducting business today is significantly different from the way people did a century ago. There have been improvements in the ways of conducting business through information technology, resulting in faster and more accurate transactions. The retail industry, in particular, has tremendously advanced through the adoption of retail systems that enhance customer service efficiency. These systems include point of sale (POS), enterprise resource planning (ERP), and customer relationship management (CRM) systems.

Retailing involves selling goods and services to consumers through various distribution channels. Retailers are responsible for satisfying customer demands, which are identified through the supply chain. They operate at the lowest tier of supply chain management, fulfilling small orders to a broad consumer base who are the final users of products. Typical retail goods include clothing, food, and recreational items. Retail outlets are widely distributed, encompassing kiosks, supermarkets, boutiques, and recreational parks. A retail system is a technological tool that facilitates transactions, improves service quality, manages customer interactions, stores customer data, and records financial transactions.

The primary retail systems—POS, ERP, and CRM—serve distinct but interconnected functions. The POS system facilitates sales transactions, inventory management, and sales reporting. It allows real-time data collection about sales performance, profit margins, and product sales trends, thereby enabling retail managers to make informed decisions. ERP software encompasses integrated applications that manage core business processes, including sales, procurement, and finance, providing a comprehensive view of organizational operations (Venkatesh, 2017). ERP systems like SAP enhance efficiency by automating routine tasks, securing data, and streamlining workflows.

CRM systems focus on managing an organization’s interaction with current and potential customers. They help in tracking customer preferences, fostering relationships, and increasing profitability by providing personalized services (Venkatesh, 2017). Business analytics enhances these systems by exploring past performance data to inform future strategy. It involves skills, practices, and technologies that analyze company data to optimize decision-making.

Applying business analytics to a sustainable recycled cocktail dress company demonstrates the importance of POS and CRM systems in operational success. These systems generate accurate financial reports and expedite customer transactions, directly impacting sales and customer satisfaction. CRM especially aids in reaching a broader audience and maintaining long-term customer relationships. However, one challenge in this industry is the shortage of skilled personnel proficient in operating these advanced systems, which hampers service delivery and customer engagement.

Promotion strategies play a significant role in driving business growth. Campaigns, roadshows, pamphlets, and brochures have successfully increased product awareness among target consumers, contributing to heightened sales. Benchmarking competitors and industry leaders also informs improvements in product quality and customer service (Hugos, 2018). A key business driver is environmental sustainability—selling products like the recyclable cocktail dress aligns with eco-conscious consumer values and enhances market appeal.

The recyclable cocktail dress from Reformation exemplifies this approach. Consumers, particularly middle-aged and older women, purchase these dresses not only for their style and attributes—such as color, size, and fabric—but also because of the environmental benefits. The trend shows increased sales driven by promotional campaigns and positive word-of-mouth, highlighting the effectiveness of strategic marketing and sustainability initiatives.

In addition to retail systems, the fashion industry is rapidly adopting technologies such as Product Lifecycle Management (PLM) and Business Intelligence (BI). PLM helps manage product development, from conception to decline, streamlining processes and facilitating innovation (Grasson, 2012). It supports faster design, manufacturing, and market introduction, thereby maximizing revenue opportunities. BI tools allow companies to analyze consumer trends and buying patterns, enabling better product positioning and targeted marketing efforts (Rouse, 2019). These technologies collectively strengthen a company’s competitive edge.

Regarding ERP solutions suited for the textile and apparel industry, SAP Business One offers comprehensive management capabilities, including material management, sales, finance, and human resources, all integrated and accessible remotely. Its use of SAP HANA enhances processing speed and data security (Oracle, 2019). Implementing such ERP systems accommodates the dynamic needs of fashion companies committed to sustainability and operational excellence.

In conclusion, the evolution of retail systems—POS, ERP, CRM, and analytical tools—has revolutionized supply chain management, customer engagement, and product lifecycle management. For sustainable fashion brands like Reformation, leveraging these technologies enhances operational efficiency, market responsiveness, and environmental stewardship. As the fashion industry continues to prioritize sustainability, integrating advanced supply chain technologies will be instrumental in achieving these goals, ensuring both business growth and ecological responsibility.

References

  • Grasson, M. (2012). The Benefits of PLM. Retrieved from https://www.example.com
  • Hugos, M. (2018). Essentials of supply chain management. John Wiley & Sons.
  • Oracle. (2019). ERP Solutions for Textile Industry. Retrieved from https://www.oracle.com
  • Rouse, M. (2019). What is Business Intelligence (BI)? Retrieved from https://www.techopedia.com
  • Rouse, M., Shiao, D., Rouse, M., & Rouse, M. (n.d.). What is ERP (Enterprise Resource Planning) and Why is It Important? Retrieved from https://www.techopedia.com
  • Suriyantphupha, P., & Bourlakis, M. (2019). Information Technology in a Traditional Retail Supply Chain: A Structured Literature Review. Projectics/Proyectica/Projectique, 1, 89-102.
  • Venkatesh, J. (2017). RFID Technology: Role of POS, E-commerce, ERP & CRM technologies in the retail industry. Journal of International Management and Research, 6(12).
  • reformation.com. (n.d.). About Reformation’s sustainability initiatives. Retrieved from https://www.thereformation.com

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